Surge Energy (TSE:SGY)
TSX:SGY
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Surge Energy
(TSX:SGY)
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Rating:66Neutral
Price Target:
C$10.50
▲(26.05% Upside)
Action:Downgraded
Date:05/09/26
The score is primarily supported by solid cash generation and manageable leverage, but held back by weaker recent profitability and declining TTM revenue. Technicals are moderately positive with price above major moving averages and a positive MACD, while valuation is mixed—an attractive dividend yield offset by a negative P/E tied to volatile earnings.
Positive Factors
Cash generation
Sustained operating cash flow and positive free cash flow provide durable internal funding for maintenance capex, distributions, and debt service. For an upstream producer, this cash generation underpins operational continuity and strategic optionality across 2–6 months despite commodity cyclicality.
Negative Factors
Declining revenue trend
A multi-period decline in revenue signals either production or realization pressure, reducing the base for margins and free cash flow. Persistent revenue erosion can force higher capital intensity per barrel and constrain funding for growth or distributions over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained operating cash flow and positive free cash flow provide durable internal funding for maintenance capex, distributions, and debt service. For an upstream producer, this cash generation underpins operational continuity and strategic optionality across 2–6 months despite commodity cyclicality.
Read all positive factors
Surge Energy (SGY) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$983.47M
Dividend Yield7.59%
Average Volume (3M)610.39K
Price to Earnings (P/E)―
Beta (1Y)0.40
Revenue Growth-12.78%
EPS GrowthN/A
CountryCA
Employees83
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.07
Shares Outstanding98,840,960
10 Day Avg. Volume748,369
30 Day Avg. Volume610,386
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)0.95
Price to Sales (P/S)1.43
P/FCF Ratio6.82
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$9.94Price Target Upside19.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.23
Revenue Forecast (FY)C$651.87M
Surge Energy Business Overview & Revenue Model
Company Description
Surge Energy Inc. explores for, develops, and produces oil and gas in western Canada. The company holds interest in the Greater Sawn Lake assets located in Northern Alberta; Valhalla/Wembley property located in northwestern Alberta; Sparky assets ...
How the Company Makes Money
Surge Energy makes money primarily by selling the hydrocarbons it produces—mainly crude oil and, to a lesser extent, natural gas and related liquids—into North American markets. Revenue is generated on a per-unit basis (e.g., barrels of oil and vo...
Surge Energy Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
68
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 528.46M | 480.72M | 665.29M | 558.64M | 734.47M | 414.64M |
| Gross Profit | 211.47M | 114.28M | 356.90M | 348.63M | 464.61M | 243.96M |
| EBITDA | 292.90M | 279.05M | 163.24M | 307.51M | 340.70M | 542.12M |
| Net Income | 7.33M | 40.26M | -53.72M | 15.75M | 231.72M | 407.61M |
Balance Sheet | ||||||
| Total Assets | 1.37B | 1.32B | 1.37B | 1.48B | 1.55B | 1.28B |
| Cash, Cash Equivalents and Short-Term Investments | 22.10M | 18.65M | 7.59M | 0.00 | 0.00 | 0.00 |
| Total Debt | 241.02M | 243.89M | 232.12M | 282.18M | 347.92M | 337.06M |
| Total Liabilities | 676.30M | 599.53M | 627.64M | 636.79M | 711.75M | 762.06M |
| Stockholders Equity | 693.58M | 724.98M | 738.51M | 843.98M | 838.32M | 513.38M |
Cash Flow | ||||||
| Free Cash Flow | 92.30M | 100.42M | 83.54M | 84.57M | 106.18M | -3.30M |
| Operating Cash Flow | 242.41M | 265.90M | 278.65M | 266.14M | 276.13M | 100.48M |
| Investing Cash Flow | -162.23M | -181.67M | -153.00M | -177.56M | -332.27M | -16.00M |
| Financing Cash Flow | -69.81M | -73.18M | -118.05M | -88.58M | 56.15M | -84.48M |
Surge Energy Technical Analysis
Positive
8.33
Price Trends
9.22
Positive
8.25
Positive
7.50
Positive
Market Momentum
0.27
Positive
57.12
Neutral
70.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SGY, the sentiment is Positive. The current price of 8.33 is below the 20-day moving average (MA) of 9.87, below the 50-day MA of 9.22, and above the 200-day MA of 7.50, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 57.12 is Neutral, neither overbought nor oversold. The STOCH value of 70.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SGY.
Surge Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$1.33B | -2.94 | 12.43% | ― | -2.78% | -83.12% | |
66 Neutral | C$983.47M | -9.41 | 1.01% | 7.59% | -12.78% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | C$575.65M | 5.87 | 18.59% | ― | 26.91% | -44.78% | |
62 Neutral | C$1.31B | 67.03 | 2.21% | ― | -15.99% | -93.93% | |
58 Neutral | C$1.81B | -4.63 | 61.60% | ― | 592.03% | ― | |
55 Neutral | C$1.14B | -11.89 | 0.08% | ― | -34.90% | ― |
* Energy Sector Average
TSE:SGY
Surge Energy
9.99
5.08
103.26%
TSE:OBE
Obsidian Energy
16.74
9.97
147.27%
TSE:TNZ
Tenaz Energy Corp
57.41
40.91
247.94%
TSE:SNM
ShaMaran Petroleum
0.19
<0.01
2.70%
TSE:VLE
Valeura Energy
12.22
4.74
63.37%
TSE:SOIL
Saturn Oil & Gas
7.29
5.56
321.39%
Surge Energy Corporate Events
Business Operations and StrategyDividends
Surge Energy Confirms May Cash Dividend on April Production
Positive
Apr 15, 2026
Surge Energy Inc., an intermediate Canadian oil producer listed on the TSX, concentrates on acquiring and developing conventional oil reservoirs, employing established technologies to maximize recovery rates and support consistent free cash flow g...
Business Operations and StrategyDividends
Surge Energy Confirms April 2026 Cash Dividend
Positive
Mar 16, 2026
Surge Energy Inc. has confirmed a cash dividend of $0.043333 per share, payable on April 15, 2026, to shareholders of record as of March 31, 2026, tied to the company’s March 2026 production. The payment, designated as an eligible dividend f...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial Disclosures
Surge Energy Lifts Output, Cuts Costs and Boosts Free Cash Flow in 2025
Positive
Mar 5, 2026
Surge Energy reported that 2025 average production rose to 23,491 boepd, about 1,000 boepd above guidance, while capital spending was cut to $159.7 million, more than $35 million below 2024 levels and $10 million under budget. The company also low...
Dividends
Surge Energy Confirms March 2026 Cash Dividend
Positive
Feb 16, 2026
Surge Energy Inc., a Calgary-based intermediate oil producer, concentrates on conventional oil reservoirs and employs proven technologies to improve recovery rates and free cash flow. The publicly traded company targets enhanced shareholder return...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.